Senate Appropriations Process Begins to Move Forward
After a few weeks of uncertainty, the Senate appropriations process is beginning to move ahead despite ongoing disagreements between Republicans and Democrats over overall fiscal year (FY) 2027 spending levels. Much of the debate has centered on proposed defense spending increases and corresponding non-defense discretionary funding levels.
This week, Senate appropriators had planned to consider and markup four FY27 appropriations bills. However, those plans were scrapped, but appropriations leaders in the upper chamber have indicated that they will be rescheduled soon. While the Labor, Health and Human Services, Education and Related Agencies (Labor-H) bill has not yet been scheduled for markup, it is expected to be considered later this summer after an initial slate of funding legislation is first considered. In the House, the Labor-H bill was approved by the appropriations committee earlier this month, but is not yet scheduled to be considered by the full chamber later on in the appropriations cycle. The appropriations process is also being complicated by the Trump administration’s recent request for additional supplemental funding related to military operations overseas.
ACTION ALERT: Ask your member of Congress to support Education and Workforce Funding in FY27.
Advance CTE will continue to monitor both chambers’ appropriations activity, particularly as they relate to education and workforce programs, and advocate for a strengthened federal investment in Career Technical Education (CTE).
House Subcommittee Examines Registered Apprenticeship Expansion
This week, the House Education and the Workforce Subcommittee on Higher Education and Workforce Development held a hearing focused on expanding and modernizing Registered Apprenticeship programs. Witnesses discussed recent federal efforts to increase apprenticeship opportunities and investments that connect learners to career pathways and address workforce shortages.
Members broadly discussed apprenticeships as a critical strategy for preparing people for in-demand careers and expanding pathways beyond a traditional four-year degree. The discussion centered on balancing quality with innovation, increasing employer participation, strengthening connections between apprenticeships and postsecondary credentials, and ensuring federal investments align with the administration’s goal of expanding apprenticeship opportunities. Several members also highlighted the potential need to modernize the National Apprenticeship Act (NAA) to support continued growth across industries– a key aspect of Advance CTE’s NAA recommendations. Watch the hearing here.
U.S. Department of Labor Rescinds WIOA Outreach Requirements
This week, the U.S. Department of Labor (DOL) rescinded the affirmative outreach requirement of the Workforce Innovation and Opportunity Act (WIOA) Title I financial assistance, which requires workforce programs to proactively reach out to individuals from historically underserved populations. The change removes the regulatory expectation that grantees conduct targeted outreach in this manner, but would maintain other core nondiscrimination requirements under WIOA. Read more details on the public register here.
Senate HELP Committee Explores Artificial Intelligence in K-12 Education
Last week, the Senate Health, Education, Labor, and Pensions (HELP) Committee held a hearing to examine the future of K-12 education in the age of artificial intelligence (AI). The hearing highlighted a bipartisan belief that AI is already reshaping K-12 education, shifting the discussion away from whether schools should use it to how it should be implemented responsibly. The discussion emphasized AI’s potential to support educators, streamline administrative tasks, and personalize learning, but underscored the risks to student safety, data privacy, and bias, as well as the impact on critical thinking and development.
The hearing also discussed the importance of keeping educators at the center of instruction, with AI serving as a tool to enhance what already exists. Witnesses also highlighted growing demand for AI literacy as a workforce skill and the importance of integrating it into standards, credentials, and work-based learning. Watch the hearing here.
ED Announces Additional Interagency Agreements
Last week, the U.S. Department of Education (ED) announced several new Interagency Agreements (IAAs) with other federal agencies as part of the administration’s broader effort to reorganize and downsize federal education functions. Among the significant changes is ED’s Office of Special Education and Rehabilitative Services (OSERS), which will now partner with the U.S. Department of Health and Human Services (DHS), and the ED Office of Civil Rights (OCR) functions related to civil rights enforcement, student privacy, and training and advisory services, which would now be shared with the U.S. Department of Justice (DOJ). Additional implementation details remain forthcoming, particularly regarding the operational structure of these new IAAs.
One key development in the IAA announcement was the ED’s confirmation that its G5 grants management system will remain in place, providing continuity for grantees and state agencies administering federal education funds for these programs.
These announcements come amid proposed reductions to several ED offices in the President’s budget request, including a 35% reduction in OCR funding. Read more here.
Treasury Previews Forthcoming Tax Credit Guidance
The U.S. Department of the Treasury (Treasury) recently released a preview of forthcoming tax guidance to implement the new federal Education Freedom Tax Credit, which is scheduled to take effect in 2027. The program allows participating states to designate Scholarship Granting Organizations (SGOs) that can receive tax-deductible contributions to fund K-12 student scholarships. The guidance also outlines eligibility requirements for students and organizations, as well as standards for administering K-12 scholarships funded through tax-credit-eligible donations. Treasury plans to release regulations later this year.
